Revenue expenditure on machinery modernisation remained deductible where the finding rested on facts and no question of law arose.

Expenditure on modernisation of mill machinery was treated as revenue expenditure deductible in computing income because the Tribunal's finding turned on the facts of the case and each disputed item had already been accepted as revenue in nature. The aggregate outlay could not be classified as capital expenditure merely because the modernisation programme involved substantial spending as a whole. Since the conclusion rested on factual findings, no referable question of law arose, and the request for reference was rejected.

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Issues: Whether the expenditure incurred on modernisation of the mills' machinery was revenue expenditure allowable as a deduction, and whether any question of law arose from the Tribunal's order.

Analysis: The Tribunal's finding that the disputed items of expenditure were revenue in nature was based on the facts found in the case. Once individual items were accepted as revenue expenditure, the aggregate could not be treated as capital expenditure merely because the modernisation programme taken as a whole involved substantial outlay. As the conclusion rested on factual findings, no referable question of law arose.

Conclusion: The expenditure was treated as revenue expenditure deductible in computing the assessee's income, and the request for reference was rejected for want of any question of law.

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